Advanced Magnesium strikes while iron is hot

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TWO years after the failure of its $1.3 billion smelter project,
Australian Magnesium has changed its name, achieved financial
stability and is set to make the first sales of its unique
alloys.

The ambitious smelter project and the associated fallout are all
in the past, managing director Ian Hartnell said after shareholders
agreed to change the name to Advanced Magnesium.

"The management of the former company have all left: the
(smelter) project was terminated in 2003 and it's time to move on,"
Mr Hartnell said yesterday. "(Advanced) is trying to create
something from the ashes."

Mr Hartnell said two of Advanced's magnesium alloys had superior
production and performance characteristics to materials now in use,
and the company was struggling to keep up with the demand from
potential customers to test the alloys.

"We have completed 10 trials of our AM-lite alloy in Japan,
Korea, Taiwan and Europe and we have 30 more booked before the end
of the year."

Advanced has ordered 60 tonnes of alloy from its Chinese
producer to meet the demand for trials. Directors expect Advanced
to generate first revenues before the end of this financial year
and to become cash flow positive within two years.